Smart Global Holdings Inc (SGH)

Days of sales outstanding (DSO)

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Receivables turnover		7.27	7.98	7.08	6.56	7.41	5.74	4.30	5.08	4.66	4.99	4.76	4.93	5.78	5.39	4.99	4.96	4.67	5.49	5.69	—
DSO	days	50.21	45.76	51.54	55.62	49.25	63.60	84.89	71.82	78.37	73.09	76.65	74.05	63.17	67.75	73.21	73.65	78.21	66.44	64.14	—

March 1, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.27
= 50.21

Days Sales Outstanding (DSO) is a crucial metric that indicates how long it takes for a company to collect revenue after making a sale. A lower DSO is generally favorable as it signifies quicker collection of accounts receivable.

Based on the data provided for Smart Global Holdings Inc, we observe fluctuations in the DSO over the past few quarters. In the most recent period as of March 1, 2024, the DSO stands at 50.21 days, which is slightly higher compared to the previous quarter's DSO of 45.76 days. This increase may indicate a slower collection of receivables, which could potentially impact cash flow and working capital management.

Analyzing the trend further, we notice that the DSO has shown some variability over the past few quarters, ranging from a low of 45.76 days to a high of 84.89 days. The highest DSO recorded on August 26, 2022, could raise a concern as it suggests an extended time frame for collecting payments, possibly leading to liquidity challenges.

Overall, a consistent and downward trend in DSO would be desirable for Smart Global Holdings Inc, as it would imply efficient accounts receivable management and improved cash flow. Monitoring DSO regularly and implementing effective credit and collection policies can help the company enhance its financial performance and operational efficiency.